Yes. Notify your state’s DMV that you sold the vehicle, cancel your insurance, and keep a copy of your receipt or bill of sale. These steps protect you from liability if the car is ticketed, towed, or involved in an incident after the sale.
Post-sale checklist:
- Submit a release of liability or notice of sale to the DMV
- Return or destroy license plates (rules vary by state)
- Cancel your auto insurance policy
- Keep the bill of sale and any receipts for your records
- Remove the car from any toll accounts or parking passes
DMV notification is important. Until you officially report the sale, you remain the registered owner. If the car gets parking tickets or is abandoned, you could be held responsible.
Most states let you file a release of liability online. It takes five minutes. Some states require you to surrender plates at a DMV office or destroy them yourself.
Insurance companies often issue a refund for unused premium when you cancel. Call your insurer the same day you sell or shortly after. Learn more about when to cancel insurance on a junk car.
